Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Sydney

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The Inner South West region of Sydney had the highest auction clearance rate on the weekend, according to CoreLogic’s latest report.
The property data firm says that out of the 100 auctions in the Inner South West 88% resulted in a successful outcome.
This is followed by the City and Inner South with 83.8% and Ryde with 83.3%.
<a href="https://www.propertyobserver.com.au/images/2017/05/01/Screen%20Shot%202017-05-01%20at%2011.38.17%20am.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/01/Screen%20Shot%202017-05-01%20at%2011.38.17%20am.jpg" alt="">
The Central Coast had the lowest auction clearance rate with only 44.4% of its 18 auctions cleared.
 
A four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-croydon+park-125135658">22 Waratah Street</a>, Croydon Park (above) was sold on the weekend for $1.72 million.
Similarly a four bedroom house at <a href="https://www.realestate.com.au/sold/property-house-nsw-ashbury-125104114">10 Trevenar Street</a>, Ashbury (below) was sold on the weekend for $1,717,500.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/01/10%20Trevenar%20Street.jpg" alt="">
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Inner South West Sydney region scores 88% weekend auction success: CoreLogic

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Raine &amp; Horne Rural Sydney has finalised a joint venture with aviation firm Fleet Helicopters to help transport its high-net worth clients and investment fund managers to property inspections across Australia.
Andrew Tout, director of Raine &amp; Horne Rural Sydney said some clients manage investment funds worth more than $60 billion and they want to see as many agricultural assets as possible.
“The joint venture with Fleet Helicopters, which has a fleet of 39 choppers, is proving a game changer for our time-poor clients," he said.
“Our clients are private entities and maintaining their confidentiality is paramount."
 
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Raine & Horne Rural Sydney finalises joint venture with Fleet Helicopters

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Sydney is new entrant at the top of the unit market, joining Melbourne and four other areas, in valuation firm Herron Todd White’s Property Clock for April.
Ipswich, NSW Mid North Coast and South East NSW stay at approaching the peak of the market, according to HTW. 
Meanwhile, Darwin is the new entrant to the bottom of the market, joining Adelaide, Emerald and Whitsundays.
<img src="https://www.urban.com.au/images/2017/04/20/April21HTWUnits.png" alt="">  
Sydney 
Greater Sydney has been a hot market for the past few years, mostly due to a sustained period of low interest rates, demand outstripping supply in most areas, overseas buyers entering the market, tax incentives, media interest and an increase in values in the entry level pushing up the middle and upper level of the market. These issues combined have caused a wave of interest resulting in a market that hasn’t been this hot for decades, say HTW.
For units, the best performing suburbs are Mosman and Cremorne, according to the valuation firm. 
Local agents have identified a sweet spot for two-bedroom units of between $900,000 and $1.2 million. 
Property Observer found this recent sale in Mosman, a two-bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-nsw-mosman-125173254" target="_blank">11/12-14 Bardwell Road</a> that changed hands for $1,230,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/MosmanHTW.jpg" alt=""> 
“This will get you a larger, older style unit appealing to a wider market segment. This price bracket is well suited to a professional couple wanting a low maintenance unit within close proximity of the city. The problem is the lack of stock driving up demand (and prices) further,” says HTW.
In the outer western suburbs of Sydney, there is strong interest in suburbs such as Richmond and Hobartville. With older ex-defence housing, it’s an affordable alternative as the median is $602,500 for Hobartville and $660,000 for Richmond according to realestate.com. 
For that you can get a 550 square metre block with a partly renovated dwelling within close proximity of Western Sydney University’s Hawkesbury campus, TAFE, Richmond RAAF airbase and train station. Many buyers have been attracted to this area due to the lower entry point and facilities provided. 
Within the eastern suburbs unit market, the suburb of Coogee has been a stand out performer, especially in the $1 million to $1.5 million price bracket. The 2016 median price for Coogee units was $1,037,500 which is up 17.9% from 2015 (source: PriceFinder).
As an example of what this median unit price will get you, <a href="https://www.realestate.com.au/sold/property-apartment-nsw-coogee-124752418" target="_blank">7/3-7 Kidman Street, Coogee</a> recently sold for $1.125 million. This property was a near original 1970s unit comprising 2-bedrooms and 1-bathroom with a one-car lock-up garage and features restricted ocean views. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/CoogeeHTW.jpg" alt="">
This market is driven by both investors and owner-occupiers which comprise a mixture of singles, couples and down-sizers. The desirable beachside location has always been a main driver for the Coogee unit market and with limited new unit development in the area, we expect to see the trend of strong growth continue into the future. 
The St George area is also continuing its strong growth period with hottest price points for houses generally being $1 million to $2 million and $660,000 to $700,000 for units.
When analysing the unit market, Brighton Le Sands gets a notable mention as a strong performer with a 2016 median unit price of $680,500, up 4.7% from 2015. 
Melbourne
Apartments in the inner city which have a point of difference are performing well compared to the rest of the apartment market, say HTW. Off-the-plan apartments have received much negative publicity in recent times, however apartments which have high-end finishes in desirable locations with good views are continuing to fetch good returns for investors. 
As an example, Property Observer found a two-bedroom apartment at <a href="https://www.realestate.com.au/sold/property-apartment-vic-melbourne-124920526" target="_blank">2303/279 Latrobe Street</a> that recently sold for $478,500.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/MelbourneHTW.jpg" alt="">
 
 
 
 
 
 
 
 
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Sydney joins Melbourne at the peak of market on HTW's April property clock for units

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Leading Australian impact fund manager, Impact Investment Group, (IIG) has entered the Sydney property market, securing options to buy into Central Park.
IIG, the Liberman family backed entity, has entered into put and call options with joint venture developers Frasers Property Australia and Sekisui House Australia to acquire two of the final properties to be built in the Central Park precinct for $190 million.
The site is partially developed.
On its mid-2018 completion, IIG will acquire the six-level, 5,413sqm ‘100  Broadway’ commercial office property and the 297-room luxury hotel ‘Four Points by Sheraton Sydney, Central Park’.
IIG has established separate investment syndicates for each property.
100 Broadway and the hotel form part of DUO – a mixed use development comprising two towers of residential, hotel, retail, childcare and commercial spaces, designed by the leading global architecture firm, Foster + Partners and local collaborating architect Architectus.
IIG CEO, Chris Lock, said he "couldn’t be more proud" of our first foray into the Sydney market with these properties.
"We were waiting to find a building designed to the highest standards in sustainability."
100 Broadway will integrate with Central Park’s highly efficient systems for power, heating, cooling and recycling water.
The properties will draw power from Central Park’s two-megawatt trigeneration plant, which is expected to reduce CO2-e emissions by 190,000 tonnes over its 25-year expected life.
The DUO towers sit on the north-west corner of the Central Park precinct in Chippendale, facing Broadway and are five minutes’ walk to Sydney’s central train station and bus interchange.
The towers are being built above and around the heritage-listed Australian Hotel, built in 1936 and bought last year by hotelier Bruce Solomon and high-profile chef Matt Moran.
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Impact Investment Group set for office/hotel Central Park, Sydney stake

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Residential vacancy rates have fallen across the Sydney market led by solid falls in availability in Middle Sydney, according to the Real Estate Institute of New South Wales (REINSW).
REINSW President John Cunningham said the March 2017 REINSW Vacancy Rate Survey saw the Sydney metropolitan market down 0.2% at 1.7%.
"Middle Sydney led the fall in rental accommodation on offer with a 0.4% decline at 1.4%," Cunningham said.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%2012.38.36%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/18/Screen%20Shot%202017-04-18%20at%2012.38.36%20pm.jpg" alt="">
"Outer Sydney fell 0.1% at 2.1% and Inner Sydney was down 0.1% at 1.6%."
The Hunter also saw a drop of 0.1% at 2.0% with a 0.7% correction in Newcastle at 2.0%.
In the Illawarra, vacancy rates rose 0.4% at 1.5% with Wollongong adding 0.1% to 1.2%.
<a href="https://www.propertyobserver.com.au/images/2017/04/18/Screen%20Shot%202017-04-18%20at%2012.39.06%20pm.jpg" target="_blank">Click to enlarge</a>
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Across regional areas, the Northern Rivers has the lowest vacancy rate at 1.0%, down 0.1%, the South Coast dropped 0.7% at 1.4% and Albury was down 1.0 at 2.2%.
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Sydney rental market continues to tighten: REINSW

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A Coles Five Dock strata-titled supermarket has sold for $19.66 million at a record net yield of 4.89 per cent, the first full line metro supermarket put on the market since 2015 in Sydney.
The sale beat the previous NSW record set by the sale of the Woolworths supermarket at Casula in Sydney's west in 2015 on a net yield of 5.11 per cent, according to selling agents James Wilson and Alexander Elliott of Colliers International.
It was snapped up by a NSW investor.
It was marketed via an expressions of interest campaign in February with price expectations in the $20 million range.
The property at 4-12 Garfield Street is a modern 3,430 sqm supermarket with a new 20-year lease to the supermarket chain. 
The property earns a net income of $960,489 pa.
"The transaction of this strata supermarket highlights the maturity of Sydney's investment market to focus more on the underlying performance of the asset as opposed to its title. This is a positive sign for the maturing Sydney retail investment market and great news for mixed-use developers looking to maximise their returns on Sydney developments," Wilson said.
Elliot said they fielded more than 200 enquiries from domestic and offshore investors.
The 3,333 square metre Coles-anchored stratum supermarket  features a restaurant and basement parking for 163 vehicles. 
The buyer acquired the property from the private developer of the property, who had previously sold the original Superbarn business at the property to Coles.
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Coles Five Dock supermarket sold for $19.66 million on record yield

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Risks to household balance sheets and housing markets have generally increased, the RBA's Financial Stability Review has noted.
In Sydney and Melbourne, housing prices are rising at a rapid pace and auction clearance rates are at high levels.
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At the same time, there continue to be concerns about an oversupply of apartments in pockets of Melbourne and in parts of Brisbane, where apartment prices have declined in recent months, rental growth has been soft and the vacancy rate has trended higher.
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In Western Australia and other regions with large exposures to the mining sector, overall housing market conditions remain weak.
Investor credit has also risen noticeably over the past six months, with investor demand particularly strong in Sydney and Melbourne.
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Overall household indebtedness has increased while income growth has remained weak.
Some types of higher-risk mortgage lending, such as IO loans, also remain prevalent and have increased of late.
APRA has recently taken measures to contain new IO lending.
The risks associated with strong investor credit growth and increased household indebtedness are primarily macroeconomic in nature rather than direct risks to the stability of financial institutions.
Some evidence suggests that investor housing debt has historically performed better than owner-occupier housing debt in Australia, though this has not been tested in a severe downturn.
Rather, the concern is that investors are likely to contribute to the amplification of the cycles in borrowing and housing prices, generating additional risks to the future health of the economy.
Periods of rapidly rising prices can create the expectation of further price rises, drawing more households into the market, increasing the willingness to pay more for a given property, and leading to an overall increase in household indebtedness.
While it is not possible to know what level of overall household indebtedness is sustainable, a highly indebted household sector is likely to be more sensitive to declines in income and wealth and may respond by reducing consumption sharply.
A further risk during periods of strong price growth is that it may be accompanied by an increase in construction that could result in a future overhang of supply for some types of properties or in some locations.
In this environment, as well as amplifying the upswing for such properties, any subsequent downswing is likely to be larger and more likely to see prices and rents fall if the vacancy rate rises.
This poses risks to the whole housing market and household sector, not just to the recent investors.
Prudent mortgage lending standards help to offset these risks. Over the past six months, lenders have further tightened lending terms, in part to keep investor credit growth within the 10% benchmark set by APRA at the end of 2014.
Recent non-price measures introduced by banks include tighter serviceability and maximum LVR restrictions on new residential projects or postcodes considered to be riskier.
Overall, the share of new lending with LVRs greater than 90% has fallen.
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The price of mortgage finance has increased of late, and loan pricing is becoming more granular.
For example, the major banks’ advertised margin between investor and owner-occupier lending rates has risen to around 50–60 basis points after narrowing during 2016.
All of the major banks will have introduced higher IO pricing by April, resulting in an average IO premium of 18 basis points for owner-occupier loans and 15 basis points for investor loans.
Regulators continue to scrutinise lender compliance with broader regulatory expectations.
ASIC’s 2015 review of IO home loans uncovered a range of weak practices that led to a subsequent tightening of industry standards.
ASIC recently lodged a case with the Federal Court alleging contraventions of the National Consumer Credit Protection Act 2009 by one lender over a three-year period to early 2015.
In March 2017, ASIC completed a review of the mortgage broker market, which outlined conflicts of interest and other unsound practices such as lax assessment of consumer expenses and a propensity to direct consumers towards some higher-risk types of loans.
ASIC’s review recommended improvements to commission payment models, greater disclosure requirements for brokers, and improved governance and oversight of brokers by lenders and aggregators.
APRA and ASIC have also recently announced a range of measures that are designed to strengthen mortgage lending practices.
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RBA says risks to housing markets have increased

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The Australian economy has beaten fears of a recession, posting a stronger-than-expected December quarter result of 1.1 percent, according to Cushman &amp; Wakefield's latest report.
In average annual terms, the 12 months to December 2016 provided solid but sub-trend economic growth of 2.5 percent.
In terms of state final demand New South Wales recorded 4.7 percent annual average growth, exceeding the long term average of 3.2 percent.
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The state economy has been boosted by investment in a number of public infrastructure projects including the WestConnex and NorthConnex transport network upgrades, while early works are underway on Western Sydney Airport.
The Reserve Bank’s cash rate remained unchanged at 1.50 percent.
The current low interest rate environment has ensured that demand to acquire vacant possession buildings, land or investments remains buoyant.
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Limited purchasing opportunities have forced potential owner-occupiers into the leasing market resulting in strong pre-lease enquiries for ≥20,000 sq m offerings, especially from the food, pharmaceutical and 3PL industries.
In light of strong demand, availability of buildings across all markets is below average.
Rents largely tracked sideways in Q1 however South Sydney recorded q-o-q rental growth of 2.6 percent, pushing face rents to $195 per sq m.
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Investment in Q1 2017 totalled $341m, down 18 percent q-o-q from the $415m recorded in Q4 2016, and down only 1 percent y-o-y.
Rolling annual investment volume was stable at $1.9bn from Q4 into Q1, but was 11 percent below the five year average, largely due an unwillingness of owners to divest their assets.
Strong competition for quality stock from both domestic and foreign investors has compressed prime yields to circa 6.50 percent in most submarkets.
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Significant variation remains in secondary stock, with yields ranging from 6.75 percent in South Sydney to 8.5 percent in the Outer West.
Noteworthy investment transactions in Q1 came from LOGOS’s acquisition of 69 Sargent’s Road, Minchinbury for $161m and China Lesso Holdings purchasing 79-99 St Hilliers Street, Auburn from Dexus for $65m.
Infrastructure projects, particularly upgrades to Sydney’s orbital road network, are continuing to shape the dynamics of the Sydney industrial market.
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The outlook for both leasing and investment remains positive, although lack of tenancy and purchase opportunities is a potential limiter of activity.
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Sydney leasing and investment market remains positive: Cushman & Wakefield

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An office suite in Sydney with Harbourside views is going up for auction on May 23 with price expectations of $4,000,000.
The property at <a href="https://www.realcommercial.com.au/property-offices-nsw-sydney-502363286" target="_blank">Suite 12, Level 3 at Walsh Bay, 13 Hickson Road</a>, is securely leased to a government-owned business and ideal as an investment property, according to its description. 
Sitting in the iconic Walsh Bay Piers precinct, the property has classic warehouse features with urban chic appeal. It has a split level configuration with interconnecting stairs.
The total area is about 375 sqm.
The current tenancy expires in November 2019 and comes with fixed 3% annual rental increases. No vacancy for 6.5 consecutive years.
Overlooking the proposed $150 million Arts precinct, the property is surrounded by popular restaurants and bars and is walking distance to Barangaroo and Circular Quay.
The property earns a net rental income of $257,699 per annum with outgoings at $62,108 per annum approx, translating to a net income of $195,591 per annum.
The listing agents are Tim Noonan and Ross Ladd of Noonan Property.
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Office suite with Harbourside views up for auction with $4 million expectations  

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Two premium streetwear stores within the Sydney CBD are on the market through Ray White by a private seller.
 Jonathon Holland from Ray White Business Sales said the businesses are situated near the heart of the Sydney CBD and are currently returning a net profit of more than $170,000 per annum from annual revenue of more than $450,000.
"The two stores each specialise in mid to high-end streetwear with one focused on menswear and the newest addition, focused on womenswear.
“The business currently stocks just under 50 brands in total and these include their own branded clothing, as well as brands such as Adidas Originals, Nike, ASICS, Champion, Puma, Reebok and Moscot.
“Proving to be a rare offering, the business is one of few Sydney Retailers stocking an exclusive range of international designer brands seeing it often attract crowds lining up down the street in anticipation of limited edition drops.
The new owner has the option to add new stock lines and continue with current store initiatives.
“The stores are located in a well-known and well-visited fashion precinct.
Mr Holland said the streetwear stores currently employ two full-time and one casual staff member and operate six days a week from 11am to 7pm.
The current lease for the main operation runs until 2019.
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